Rao Edusolutions will use the credit to scale up its coaching services business and refinance existing loans, Avendus Finance said in a statement.

Incorporated in 2013, Rao Edusolutions operates a chain of coaching centres for those who wish to join IITs and medical colleges. The company has a network of 27 centres spread across four states—Maharashtra, Delhi, Gujrat and Rajasthan—with more than 5,500 students.

“Avendus Group has emerged as a partner, providing constant guidance and support,” said Vinay Kumar, promoter and chief executive officer of Rao Edusolutions.

“Kumar has demonstrated the ability to scale up the educational coaching business. His well-thought-out approach to future expansion has given us the confidence to help the firm accomplish the same,” said Sandeep Thapliyal, managing director and chief executive officer of Avendus Finance.

Rao Edusolutions’ net sales stood at Rs 57.4 crore while profit after tax was Rs 3.2 crore in FY2016-17, according to VCCEdge, the data research platform of News Corp VCCircle.

Avendus Finance, a subsidiary of Avendus Capital, was set up in November 2016. It specialises in providing customised structured credit solutions.